If the present value of financial lease payments were $100,000, this capitalized amount would appear:
A)As a liability on the lessee's balance sheet
B)As income on the lessor's income statement
C)As a liability and as an asset on the lessee's balance sheet
D)Only on the lessor's financial records

Question

Quizplus · Accepted Answer

The present value of financial lease payments is recorded as both an asset and a liability on the lessee's balance sheet, reflecting the right to use the asset and the obligation to make lease payments.

If the Present Value of Financial Lease Payments Were $100,000